Infinite banking is a process that makes use of the dividends from whole life insurance policies. If you overfund a policy, it has cash value and can be accessed any time. Leaving money in a checking or savings account is undesirable because it does nothing there. Infinite banking, however, can earn you a tax-free yield (life insurance yields are tax-free). Yields can be 3-4% and are independent of the stock market. There’s also some bankruptcy protection involved. Ultimately, infinite banking provides liquidity and tax-free yields.
- Infinite banking has a guaranteed part to it. Usually in the form of interest.
- Having a type of savings with increased interest is a sort of infinite baking.
- This money is also not connected in anyway to stocks making it more interesting for investors.
“I best define infinite banking is it’s really our process. In creating private vault for you to use as your bank. And overall it’s a process, the vehicle that it uses his whole life insurance and its dividend paying whole life insurance is the product of choice on that.”